Italy’s Minister of Economy and Finance Giancarlo Giorgetti expressed significant concern regarding US stablecoins, arguing that their rise poses a greater threat to European financial stability than US trade tariffs. At a recent event in Milan, he emphasized that these dollar-backed stablecoins enable Europeans to engage in cross-border payments without needing a US bank account, undermining the euro's dominance. Giorgetti called for European Union lawmakers to strengthen the euro's position as an international currency, highlighting the importance of the digital euro currently being developed by the European Central Bank (ECB). Meanwhile, in the US, lawmakers are pushing forward with stablecoin regulations, including the STABLE Act which mandates business transparency from stablecoin issuers and the GENIUS Act which seeks to ensure compliance with financial regulations. Giorgetti's comments were echoed by ECB Executive Board member Piero Cipollone, who also advocated for a central bank digital currency to protect the eurozone’s monetary sovereignty against US stablecoin dominance.

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